RAM Tech’s plan to build a new hydrogen fluoride plant at Dangjin, South Korea has been denied by the local government.
Dangjin’s city hall said on Monday that it has rejected the plan.
Local residents have voiced their opposition to the plan.
A RAM Tech spokesperson said the company plans to launch a lawsuit against the city or South Chungcheong Province to overturn the decision.
A Dangjin city hall representative said residents have raised their concern due to RAM Tech’s factory at Geumsan in the same province previously suffered an accident.
RAM Tech had secured the right to move in to build the factory November.
The new plant was to take up a space of 23,948 meter-square and increase its production capacity of hydrogen fluoride to 13,000 metric tonnes per year once it was completed in 2022.
Hydrogen fluoride is used in the cleaning process of wafer fabrication.
Their production is dominated by Japanese companies such as Morita Chemical Industries and Stella Chemifa.
The Japanese government had restrict their export to South Korea back in 2019.
Samsung and SK Hynix reacted to the ban by fostering local suppliers of the material.
RAM Tech supplies them to SK Hynix, while Soulbrain provides the material as well as etching gas to Samsung Electronics.